Linking customer lifetime value with shareholder value

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Created on Thursday, 01 May 2003 00:00

Written by Heinz K. Stahl, Kurt Matzler, Hans H. Hinterhuber

Industrial Marketing Management

The article provides a conceptual framework linking customer lifetime value to shareholder value, as customers are assets that increase the latter. Optimally this results in accelerated, enhanced, less volatile and less vulnerable cash flows, as well as in an improved residual value of the firm.